PPPRA Says No Plan To Increase Petrol Price

PPPRA Says No Plan To Increase Petrol PriceThe Petroleum Products Pricing Regulatory Agency (PPPRA) has reaffirmed that the Federal Government has no plan to increase the price of Premium Motor Spirit (PMS), also known as petrol.

The General Manager Operations of PPPRA, Mr Olasupo Agbaje, made the declaration on Monday while addressing reporters in Abuja, Nigeria’s capital.

Mr Agbaje said the agency has also commenced the payment of the new bridging allowance to tanker drivers, as approved by the government recently.

The clarification comes barely a week after the Nigerian National Petroleum Corporation (NNPC) said it has no plan to increase the pump price of petrol.

The Corporation, in a statement, stated that the recent increase in bridging allowance to transporters will not affect the prevailing petrol price of 145 Naira per litre.

The NNPC reiterated its commitment to sustaining the existing cordial relationship between the Corporation and the leadership of the downstream industry unions and other stakeholders.

NNPC Says No Hike In Petrol Pump Price

NNPC Says No Hike In Petrol Pump PriceThe Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that it has no plan to increase the pump price of Premium Motor Spirit (PMS), also known as petrol.

In a statement issued on Wednesday by the NNPC spokesman, Ndu Ughamadu, the Corporation explained that the recent increase in bridging allowance to transporters from 6.20 Naira to 7.20 Naira per litre will not affect the prevailing petrol price of 145 Naira per litre.

According to the statement, the clarification was made in Abuja by the NNPC Chief Operating Officer (COO) in charge of Downstream Operations, Mr Henry Ikem Obih.

“Rebalancing Of The Margins”

Mr Obih said there was no plan by government or any of its agencies to review the pump price of petrol above 145 Naira per litre, adding that the rise in the bridging cost was achieved after an adjustment was made in the “lightering expenses” from Four Naira to Three Naira per litre, and the difference transferred to compensate for the cost of bridging within the same template.

The bridging allowance refers to the cost element built into the products pricing template to ensure a uniform price of petrol across the country, while lightering expenses involve charges for moving products to depot area from mother vessels by light vessels, due to the inability of the former to berth in shallow water depth.

“What happened, in simple language, is a rebalancing of the margins allowed and approved for stakeholders. So what the Petroleum Products Pricing Regulatory Agency (PPPRA) did was to take One Naira from lightering expenses and add same to the bridging allowance, that is how we arrived at 7.20 Naira. Therefore, PMS remains at the ceiling of 145 Naira per litre, he said.

“No Risk Of Shortage”

On the availability of product supply, the COO said as at Wednesday, Nigeria has 1.3 billion litres of petrol which translates to an inventory of 36 days.

“What this means is that even if we stop importation or refining of petrol right now, we have enough products in the country to provide for the needs of every Nigerian for a period of 36 days,” he said.

Obih noted that the supply availability was bolstered with the production of petrol from the three refineries located in Port Harcourt, Warri and Kaduna.

“There is absolutely no risk of shortage in supply as we also continue to import, to support the production from the refineries. We have informed the Department of Petroleum Resources (DPR) to enforce the prevailing 145 Naira per litre price regime, and to also ensure that every service station that has fuel is selling to the public,” he said.

The COO reiterated the readiness of the NNPC management under the leadership of its Group Managing Director, Dr. Maikanti Baru, to sustain the existing cordial relationship between the Corporation and the leadership of the downstream industry unions and other stakeholders.

He said the DPR, which is the regulatory arm of the industry, had been alerted to sanction fuel station owners who engage in hoarding, or charge consumers in excess of the approved pump price of petrol.

Dr. Baru had announced the review of the bridging allowance on Monday at a mediation meeting between the Petroleum Tanker Drivers (PTD) and the Nigerian Association of Road Transport Owners (NARTO),

The announcement consequently led to the suspension of an industrial action embarked upon by members of the National Union of Petroleum and Natural Gas Workers (NUPENG).

50 Companies Bid For NNPC’s Boat Supply Term Contract

50 Companies Bid For NNPC's Boat Supply Term ContractFifty companies have submitted bids to partake in the provision of seaworthy tugboats on charter time basis for the maritime operational requirements of the Nigerian National Petroleum Corporation (NNPC) in Lagos, Warri and Port Harcourt.

A statement by the NNPC spokesman, Mr Ndu Ughamadu, said on Sunday that “successful companies would be engaged on a two-year term contract in the first instance with an option of renewal for a further one year.

“Winners are expected to provide services which include: aiding the berth and un-berth of all ships operating at the NNPC jetties/buoy, logistics support for safe ship-to-ship operations which covers movement of fenders, horses, documents, rigging and unrigging of fenders among others”.

Speaking at the public bid opening event, the NNPC Group General Manager, Supply Chain Management, Mr Shehu Liman, said the management of the corporation, under the watch of Dr. Maikanti Baru, was determined to instill and sustain the values of transparency, accountability and integrity in the procurement process.

He noted that apart from providing a level playing space for all stakeholders, the public bid exercise was in conformity with existing Federal Government’s legislation on procurement, which was also in tune with the NNPC standing regulations on procurement to ensure transparency and fairness.

The bid covered services such as “stand-by and positioning vessels at the Single Point Mooring (SPM) buoy among other marine services”.

The event was declared open by the NNPC Group General Manager, Marine Logistics Division, Mr Dalhatu Makama.

Mr Makama explained that the essence of the bid process was to ensure that companies with the requisite experience in maritime operations were given the opportunity to compete for the available service in a fair and transparent manner.

The event, which was held at the Abuja Corporate Headquarters of the corporation, had in attendance representatives of the bidding companies, with officials of the Bureau of Public Procurement (BPP), Department of Petroleum Resources (DPR), Nigerian Extractive Industries Transparency Initiative (NEITI), Nigerian Content Development and Monitoring Board (NCDMB) and some members of the civil society as observers.

NNPC Has Been Cleared Of Missing Money Scandal – Spokesman

An NNPC spokesman, Omar Ibrahim, on Monday disclosed that the petroleum agency has been cleared of all allegations leveled against it by the CBN Governor, Lamido Sanusi, through its response to the controversial letter which claimed a sum of $48.9 billion was ‘missing.’

Mr Ibrahim told Channels Television during a Sunrise Daily interview that the position of theagency concerning the CBN governor’s letter to the President which made allegations of a missing 49.8 billion dollars supposedly unremitted by the agency to the FAAC, was wrongly written, insisting that “We believe that that letter was born either out of complete mischief or lack of understanding of the operations of the oil industry and how oil is marketed.”

There are five streams for crude oil proceeds: equity crude, taxes, royalty, third party and NPDC. Mr Ibrahim explained while speaking on Sunrise Daily that the total sum of monies realised from all these streams is over 67 billion dollars.

“Since we have 5 streams, NNPC is responsible for only equity crude,” he said.

What is collected in taxes is paid into CBN account for the FAAC in the name of the FIRS. For royalty, we pay it into the DPR account in the CBN.

What the NNPC pays into the Central Bank in its name is the equity, he said, adding that the ‘third party’ and the ‘NPDC’ is “not very significant.”

According to him taxes take up between 50-88 percent of the total proceeds while royalty accounts for 0-20 percent. The NNPC pays the rest into the FAAC with the CBN.

He stated that the DPR is not an off-shoot of the NNPC as widely believed but an “agency of government in the ministry of petroleum resources.” It is a parastatal “completely independent of the NNPC.”

Mr Ibrahim insisted that the 4th of October reply to the letter written on 25th of September cleared the NNPC of all allegations and “that was why nobody came back to us.”

“How it lived and became an issue now is something we’ve been wondering.”

Asked if the CBN was satisfied with NNPC’s response, Mr Ibrahim said “the CBN did not communicate to us directly and therefore we did not communicate to them directly.”

He however did not confirm if the CBN received their letter but was quick to conclude that they received the letter “because they sent it to Mr President; the President sent it to NNPC for clarification and it was sent back to His Excellency and we believe the President would have cleared shown the Governor of the Central Bank.

“That ended the matter as far as we are concerned.”

On Sanusi’s purported ignorance of the workings of the NNPC, Mr Ibrahim hinted that the governor of the apex bank does not know everything.

“People work under him and they are the ones who report to him,” he said, hinting that his immediate lieutenants did not see the letter nor approve it.”